We take a look at what you need to know about whole term life insurers
When people take out life insurance, they often don't pay enough attention to their policy to realise exactly what they are actually getting. This means that they might be paying for far less cover than they actually believed. If you'd like to avoid this kind of situation, this guide is exactly what you need.
There is a huge difference between a whole term life insurance policy and a traditional term life insurance policy. With a traditional one, you are simply covering yourself for the duration outlined in your policy, often for twenty or thirty years. This means that your loved ones can often expect to get much less than expected when the inevitable happens and your insurance policy pays out.
You can instead take a look at a whole term life insurance policy. Although your premiums are likely to be several times higher, you are guaranteed the full pay out when you die, or if you live until your one hundredth birthday (this is usually the date whereby the policy automatically terminates).
While this guaranteed pay out seems like a great deal, it's worth taking a look at the additional costs involved. As we mentioned, you'll pay out several times the monthly premiums you would on a traditional life insurance policy, as whole term life insurers want to make sure that they are protected.
This isn't entirely unreasonable on their behalf, however it makes it very important that you seek expert financial advice before signing any contracts. Your financial advisor should be able to work out all the pros and cons of a particular policy in order to inform you whether or not it suits your current financial situation.